Formula and method
Worked example
Cost 500 and 100,000 impressions give CPM 5 in the same currency. CPM 5 with 100,000 impressions also gives a total cost of 500.
Assumptions and limits
- When solving for CPM, impressions must exceed 0. When solving for impressions, CPM must exceed 0. Zero cost may produce zero CPM or zero planned impressions.
- Estimating cost at a supplied rate allows a zero rate or zero impression quantity, giving zero cost. This does not establish an observed CPM with zero impressions; 0/0 is undefined.
- Impressions are not unique reach, clicks, qualified views or sales. Do not mix served and viewable impressions; a planned CPM does not guarantee auction prices or delivery.
Frequently asked questions
Do I need to connect an advertising account?
No. This is local arithmetic; it does not read or change advertising accounts, bids or budgets.
Can I simply average CPMs across ad groups?
Add comparable costs and impressions separately, then calculate CPM. A simple average of CPMs usually gives the wrong result when impression counts differ.